The U.S. oilfield services sector is bracing for a sharp slowdown as plunging crude prices—driven by OPEC+ supply hikes and Trump’s trade war—force producers to slash drilling budgets, idle rigs, and delay projects.
Key Developments:
- Price Plunge: Brent crude has **collapsed to ~63/barrel∗∗(from63/barrel∗∗(from78 in January), pushing shale drillers below $65/bbl profitability thresholds.
- Drilling Freeze:
- Diamondback Energy cut $400M from 2025 capex, reducing well completions.
- Coterra Energy slashing Permian rigs by 30% in H2 2025.
- Service Sector Pain:
- Halliburton warns of fleet idling and equipment relocations overseas.
- SLB reports delays in Mexico and Saudi Arabia, forecasting global upstream spending declines.
- Baker Hughes predicts double-digit North America budget cuts, with tariffs threatening $200M EBITDA hit.
Trade War Toll:
- Trump’s tariffs are raising equipment costs, with Halliburton facing $0.02–0.03/share quarterly EPS drag.
- LNG & Data Centers emerge as rare bright spots—Baker Hughes eyes $1.5B in data-center orders by 2027.
Oilfield Giants SLB, Halliburton, Baker Hughes Brace for Downturn as Crash in Prices Sparks Drilling Cuts